City of Sacramento
City Council - 5PM Report
915 I Street Sacramento, CA 95814
www.cityofsacramento.org
File ID: 2023-01485 12/12/2023 Consent Item 18.
Amendment No. 2 to California Public Employees’ Retirement System (CalPERS) Memorandum of Understanding
File ID: 2023-01485
Location: 2nd to 7th streets, Q to S streets, District 4, represented by Councilmember Valenzuela Recommendation: Pass a Motion Authorizing the City Manager or City Manager’s designee to execute Amendment No. 2 to a Memorandum of Understanding with CalPERS related to residential development at the CalPERS Headquarters site.
Contact: Denise Malvetti, Deputy Director, (916) 808-7064, [email protected], City Manager’s Office of Innovation and Economic Development; Michael Jasso, Assistant City Manager, (916) 808-1380, [email protected]
Presenter: None
Attachments:
1-Description/Analysis
2-Memorandum of Understanding
Additional Description/Analysis
Issue Detail: In June 2001, the City of Sacramento entered into a Memorandum of Understanding (MOU) with CalPERS related to development at the CalPERS headquarters site in the vicinity of Q and R streets, between Third and Seventh streets. Among other matters, the MOU memorialized CalPERS’ intent to develop a portion of the site for office uses and to develop the remainder for residential use. The MOU further contained project descriptions, development schedules, and City and CalPERS obligations.
In October 2007, Council approved the first amendment to the MOU which adjusted the development plan and schedule. Since 2001, the City and CalPERS have both completed obligations under the MOU so the parties would like to execute a second amendment to memorialize the work that has been completed including the development of 68,328 gross square feet of residential development by CalPERS and street and alley abandonments by the City. Additionally, CalPERS has requested that
File ID: 2023-01485 12/12/2023 Consent Item 18.
the MOU be amended to expand the boundary to include an adjacent property located at 1800 Third Street and allow them to meet their housing obligations on that site or assign their housing obligation to a third party. Adding properties to the MOU boundaries increases the developable land for housing.
Policy Considerations: The action recommended in this report is consistent with Goal 1 of 2021- 2029 Housing Element: Increasing Overall Housing Production. Housing was also identified as one of the City Council’s top priorities during their September 26, 2023 priority setting workshop.
Economic Impacts: None.
Environmental Considerations:
California Environmental Quality Act (CEQA): November 9, 2000, CaIPERS, as lead agency for the Project under the California Environmental Quality Act ("CEQA"), Public Resources Code Section 21000, et seq., certified an Environmental Impact Report for the the CalPERS Headquarters Expansion Project ("EIR"), and approved the project subject to the implementation of certain mitigation measures recommended by the Final EIR. The City reviewed and considered the EIR and adopted Findings in support of the project prior to approving the MOU in 2001. The proposed changes to the MOU are not substantial and will not require major revisions in the previous EIR. Nor have any of the circumstances in CEQA Guidelines section 15162(a) occurred. Therefore, no subsequent or supplemental review is required.
Sustainability: Increasing housing production in infill areas can help reduce dependence on private automobiles thereby reducing vehicle miles traveled (VMTs) and improving air quality.
Commission/Committee Action: None.
Rationale for Recommendation: There remains a great need for housing in Sacramento and the proposed MOU amendment encourages the development of additional housing. In 2001, the City and CalPERS entered into the MOU with the shared goal of increasing office and housing development in the Central City. During this time CalPERS has developed 68,328 gross square feet of housing. The proposed amendment will increase the footprint of the MOU boundaries to enable CalPERS to meet their obligation to develop approximately 180,000 sf of residential development.
Financial Considerations: None.
Local Business Enterprise (LBE): Not applicable.